Budget Airlines

CHAPTER SELF-STUDY QUESTIONS:3. In both Europe and North America, established airlines are desperately cutting costs in order to compete with the increasing number of budget airlines. However, it is highly unlikely that these airlines will ever match the cost efficiency of Southwest, Jetblue or Ryanair. What opportunities are there for established airlines to improve their competitive position through differentiation strategies? Make specific proposals for how established airlines can differentiate their customer offerings more effectively.

Few other industries generate the amount and intensity of attention given to airlines, not only among its participants but from government policy makers, the media, and almost anyone who has an anecdote about a particular air travel experience. Since the economic deregulation of airlines in the United States in 1978 the questions of cost efficiency, operating profitability and competitive behavior have become the dominant issues facing airline management. In early 2001 the combination of reduced business travel budgets and substantial cutbacks in airline passenger service quality led more business travelers to look for alternatives to paying premium air fares – namely low-fare airlines for business travel. Southwest, Jetblue and Ryanair are very efficiently run airlines that offer customers consistently cheap airfares in the mature airline industry. Over the past 10 years, the established airlines have attempted to differentiate their services to compete with these companies in numerous ways. However, while such differentiation has proved critical to competitive advantage in business class, for economy fliers, differentiation initiatives have met limited market response. Attempts to increase legroom, offer “economy-plus” seats, superior in-flight entertainment and achieving superior punctuality have met little market response from customers. The only...

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Capacity utilization of IndiGo airlines fleet
The utilization rate of IndiGo is around 16hours a day which is infact one of the highest in the industry. Thus even without using too many airplanes, the airlines can provide its ferrying service to a larger number of people. On an average its passenger loads have been around 90%.
High seating Capacity of aircrafts
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...BudgetAirlines
Threats and opportunities within the industry, a brief Report
Mr. Craig Haldane
Glasgow, 30th November 2014
Contents
1.
2.
3.
4.
5.
Introduction: What is a Budget or Low Cost Airline……………………………………………………… 1
Strategies Within the Industry……………………………………………………………………………………… 1
Threats Within the Industry…………………………………………………………………………………………. 2
Opportunities within the Industry………………………………………………………………………………… 2
Conclusion…………………………………………………………………………………………………………………... 3
1. Introduction: What is a Budget or Low Cost Airline
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and Schroder “A low cost airline in the classic and original sense of the term is a provider of a
basic product. This is also termed as a no frills airline” (Gross & Schroder, 2007). The general
public quickly recognized a budget or low cost airline is a carrier who offer cheap flights, no
luxuries in a no-frills setting. The first mover in the European market was an Irish company
called Ryan Air. The company was formed in 1985 by Michael O'Leary and is now the leading
budget operator in the European aviation industry with a net profit in 2014 of 522.8 million
Euros (O‘Leary & Bonderman, 2014). Drawing inspiration from the United States Budget Carrier
South...

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Airline
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Yield Management
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...BUSINESS PLAN SKYTRAILS AIRLINE, LTD.
London Stansted Airport
London, United Kingdom
SkyTrails Airline plans to establish itself as a niche player in the long-haul market of business travel. By continuously focusing on the needs of the premium-class business traveller, SkyTrails will provide the best value proposition in the markets it serves. It will offer customers a compelling value proposition: a high level of service and comfort at 50 percent of the current published business-class fare.
EXECUTIVE SUMMARY
THE COMPANY
REGULATORY ENVIRONMENT
MARKET ANALYSIS
FINANCIALS
APPENDIX
EXECUTIVE SUMMARY
Purpose
Having successfully raised £1.3 million from angel investors, SkyTrails is now looking to raise £25 million from investors who are interested in the opportunity presented by SkyTrails and believe in its growth potential. This is a unique opportunity to invest in a new concept in the aviation industry which offers attractive returns and a clear exit strategy in the public markets within 3 to 5 years.
Vision
SkyTrails' aim is to establish itself as a niche player in the long-haul market of business travel.
By continuously focusing on the needs of the premium-class business traveller, SkyTrails will provide the best value proposition in the markets it serves.
Overview
SkyTrails is the project name for a new airline company that will focus on single class long-haul...